After plummeting from about $325 to less than $100, Tesla came screaming back.
Now at $210.85, we’d like to see it closer to $300 this year. . For one, millions of electric vehicles are expected to hit the roads over the next decade.
Two, Tesla just reported EPS of $1.19, which beat by six cents. Three, soothing investor concerns, the company plans to produce about 1.8 million cars this year, up from about 1.37 million last year. And, CEO Elon Musk added that orders were outpacing production two to one. Even Mizuho rates TSLA as a buy, with a price target of $252.
Plus, the U.S. Treasury Department just ignited the stock even more.
The government agency just announced it would change the definition of an “SUV” to make more EVs eligible for tax credits of up to $7,500.
According to TheHill.com, “The department has updated the classification standards used to determine eligibility, expanding the definition of an SUV. The $7,500 tax credit applies to SUVs costing up to $80,000, but there is no such benefit for passenger cars more expensive than $55,000. The update, retroactive to Jan. 1, will use the standard set by the Environmental Protection Agency’s (EPA) fuel economy standards.”
At the same time, the TSLA stock is technically stretched in overbought territory. We can see that with RSI, MACD, and Williams’ %R. Even if the stock does correct, weakness may be another shot at a big opportunity – again.
